Wal-mart Stores, the multinational retail corporation, has announced a partnership with electronic payments provider Euronet Worldwide over a new service called Walmart-2-Walmart.
The service, which will be launched on 24 April, will let customers transfer money to and from more than 4,000 Walmart stores in the US at ‘much lower fees’ than those of other such services, according to the company.
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Transfers via MoneyGram, which currently provides money transfer services for Walmart, will remain available for customers willing to send money to different locations.
Customers using the Walmart-2-Walmart service will be limited to $900 in transfers per day because higher amounts require the sender to provide much more information.
This announcement puts Walmart in direct competition with Western Union over domestic money transfers.
Western Union shares were down 7.1% in premarket trading, while those of MoneyGram were down 14.6%. Euronet was up 4.2%.
Last year, Walmart got around 1% of annual sales from financial services such as money orders, prepaid cards, wire transfers, check cashing and bill payments, according to its latest report.
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